01:30 PM EDT, 05/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $93 from $89, 21.1x our FY 26 (Jan.) EPS of $4.41 (down from $4.44; we kept FY 25 at $4.03), a discount to club peers but more in line with dollar store operators. FQ1 (Apr-Q) adj-EPS of $0.85 (flat Y/Y) was $0.02 above consensus. Comp sales (ex-gas) grew 0.6% vs. the 0.3% consensus, due to traffic growth (+3%) and unit volume growth in perishables, grocery, and sundries. General merch comp sales were slightly negative compared to +2% growth in FQ4, primarily driven by bad weather (impacted seasonal goods like patio furniture). That said, BJ saw positive comp sales in categories like consumer electronics and apparel. Merchandise gross margins fell 50 bps Y/Y, but this was primarily due to the lapping of last year's co-branded credit card transition. We keep a Strong Buy rating, as we remain confident that BJ can drive strong traffic and membership growth as it expands its footprint and continues to focus on delivering quality (e.g., Fresh 2.0 initiative) and value to its members.